Explained Featured National

Farmers Across India Are Not Protesting. Some Are Busy Reaping the Benefits of Recent Farm Laws

farm reforms

As the baseless scaremongering over recent farm laws caused tension in some parts of the country, it seems that the rest of the nation as a whole has not only accepted the farm reforms but is also already reaping the benefits of new laws that give much freedom to farmers. A few days ago, reports emerged in media that explained how a maize grower from Maharashtra invoked a provision in The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020 to sue two traders for not paying money they owed him for sale of produce and successfully recovered the outstanding bill of ₹2.85 lakh.

Now, a report in The Indian Express provides another bright example of how farm reforms have given advantage to both farmers and marketeers.

According to the report, in the last three months, MahaFPC, the umbrella body of farmer producing companies (FPC) in Maharashtra, estimates that since the laws were enacted in September, FPCs in four districts have made worth ₹10 crore from trade outside mandis.

What is the benefit for both buyers and the farmers in this instance? As the report itself notes, “For farmers, this meant savings in terms of transportation cost while companies benefited by not having to pay for mandi cess.”

According to the report, In the last three months, 19 FPCs, mainly in Marathwada, have recorded 2,693.588 tonne out-of-mandi trade with companies.

These can be taken as the initial signs of farm reforms bringing benefits. As this trend further gains ground, more and more Farmers’ Produce Organisations (FPO) will enter into trade with agro/food-based companies. In the coming days there will be many more reports that would tell the story of farmers turning into entrepreneurs; agriculture start ups linking various companies with farmers thereby opening up a new avenue for youth; and companies joining hands with farmers by leveraging their research and expertise to create newer consumer segment etc.

You may also like to read:

Farm Reforms Show Encouraging Initial Trends in Direct Marketing of Farmers Produce